{"id":2591,"date":"2018-11-07T14:29:10","date_gmt":"2018-11-07T20:29:10","guid":{"rendered":"https:\/\/cookco.us\/news\/?p=2591"},"modified":"2018-11-07T14:29:10","modified_gmt":"2018-11-07T20:29:10","slug":"heres-how-tax-reform-changed-accounting-methods-for-small-businesses","status":"publish","type":"post","link":"https:\/\/cookco.us\/news\/heres-how-tax-reform-changed-accounting-methods-for-small-businesses\/","title":{"rendered":"Here\u2019s how tax reform changed accounting methods for small businesses"},"content":{"rendered":"<h2>The Tax Cuts and Jobs Act \u2013 better known simply as tax reform \u2013 allows more small business taxpayers to use the cash method of accounting.<\/h2>\n<p>Tax reform now defines a small business taxpayer as a taxpayer that has average annual gross receipts of $25 million or less for the three prior tax years and is not a tax shelter.<\/p>\n<p>Here\u2019s how last year\u2019s legislation changed the rules for small business taxpayers. The law:<\/p>\n<ul>\n<li>Expands the number of small business taxpayers eligible to use the cash method of accounting by increasing the average annual gross receipts threshold from $5 million to $25 million, indexed for inflation.<\/li>\n<li>Allows small business taxpayers with average annual gross receipts of $25 million or less for the three prior tax years to use the cash method of accounting.<\/li>\n<li>Exempts small business taxpayers from certain accounting rules for inventories, cost capitalization and long-term contracts.<\/li>\n<li>Allows more small business taxpayers to use the cash method of accounting for tax years beginning after Dec. 31, 2017.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/rp-18-40.pdf\">Revenue Procedure 2018-40<\/a> provides the procedures that a small business taxpayer may use to obtain automatic consent to change its methods of accounting to reflect these statutory changes.<\/p>\n<p>More information:<br \/>\n<a href=\"https:\/\/www.irs.gov\/newsroom\/tax-cuts-and-jobs-act-a-comparison-for-businesses\">Tax Cuts and Jobs Act: A comparison for businesses<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Tax Cuts and Jobs Act \u2013 better known simply as tax reform \u2013 allows more small business taxpayers to use the cash method of accounting. Tax reform now defines a small business taxpayer as a taxpayer that has average annual gross receipts of $25 million or less for the three prior tax years and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2592,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2018-11-16T02:31:08Z","apple_news_api_id":"30ca67f1-2ead-4603-89da-bea4f91a795b","apple_news_api_modified_at":"2018-11-16T02:31:11Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AMMpn8S6tRgOJ2r6k-Rp5Ww","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/2591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=2591"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/2591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/2592"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=2591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=2591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=2591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}